Savers struggle as accounts are reduced to cope with lockdown – advice for savings boost

SAVERS are not coping well through the coronavirus lockdown according to a survey recently completed by finder.com. The personal finance comparison site has found that many British people have had to dip into their savings accounts to get by and some have no savings at all.

Savings accounts across the UK are struggling at the moment as consumers get used to a new normal. Coronavirus has forced families to adapt to strict lockdown rules and their income and employment has taken a hit as a result.

coronavirus has forced many people to apply for Universal Credit (Image: EXPRESS)

However, there could be a substantial number of people within the UK who don’t have much in the way of savings.

Nearly a third (29 percent) of respondents have less than £600 in savings.

On top of this, one in ten (nine percent) have no savings at all.

This is worrying as finder detailed that (according to personal finance experts) individuals should have at least three months’ worth of living expenses covered by savings, just in case they experience a sudden loss of income.

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On an averaged basis, this would mean that £4,700 in savings would be needed as a minimum for emergencies and according to finder’s analysis, but 39 percent currently have enough to cover themselves for three months if their income stops.

Jon Ostler, the CEO at finder.com, commented on the troubling findings: “During this uncertain time, having a buffer of savings may be more important than ever.

“While losing your job isn’t nice to think about and may feel like a distant reality, we can never predict what is around the corner and having some savings in the bank is a good idea."

Fortunately, he went on to provide a number of tips for how consumers can boost their savings:

The government have launched several support measures to help consumers (Image: GETTY)

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Use free budgeting apps

“One of the best ways to save more is to spend less.

“Setting a budget may be relatively easy to do but sticking to it can be harder. "Free personal finance apps such as Yolt and Money Dashboard have a range of features from budgeting tools, being able to monitor multiple accounts at once and real-time breakdowns of your spending, enabling you to track and maintain your budget."